Words: Ashey Rigg
Published: 16th November 2009
Tighter rules fuel rise in online mortgage fraud
British newspaper, The Observer reports on an increasing trend for property buyers to purchase false “proof” of income to aid their mortgage applications.
A number of online businesses, like
Replicadoc.co.uk have grown-up offering “genuine Inland Revenue approved payslips for proof of income” says the report.
Users are asked to enter details including a company name, a notional salary and a national insurance number. The websites calculate the user’s taxable pay and national insurance and often offer to add further details such as pension deductions and bonus payments.
Lenders say the forgeries are difficult to spot and are concerned that their use could become more prevalent under new FSA regulations which require more physical documentation.
Given that tight mortgage restrictions are crippling transaction volumes, a minority of agents may be tempted to recommend these services to clients struggling to finance their overseas property purchases. Be warned however, anyone using a fake payslip to get a mortgage would be committing fraud by false representation, punishable by 10 years in prison; or possession of an article for use in the course of fraud, which can carry a five-year sentence.
Full story from
The Observer.
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